Malaysia gov't cuts fuel costs for Muslim festival

The Associated Press , Kuala Lumpur | Thu, 09/04/2008 10:55 AM | World

Malaysia's government has agreed to subsidize diesel for buses during upcoming Muslim festivities after transport cutbacks sparked by high fuel costs left thousands of people without bus tickets to return to their hometowns.

Anxious crowds thronged terminals in major cities after most companies claimed that bus tickets were sold out over the next few weeks due to the Eid al-Fitr holiday season, which marks the end of the Muslim fasting month of Ramadan.

Domestic Trade and Consumer Affairs Minister Shahrir Samad said late Wednesday that the Cabinet agreed to spend up to 150 million ringgit (US$45 million) to subsidize diesel for an additional 2,000 buses until the holiday rush ends mid-October.

"We do not want anything that could disrupt the people's return home," Shahrir said.

Eid al-Fitr is the biggest holiday of the year for ethnic Malay Muslims, who comprise nearly 60 percent of Malaysia's 27 million people. Millions of city dwellers head back to their home villages every year to celebrate the holiday.

Companies usually lease extra buses to cope with the demand, but many refused to do so this year after the government recently hiked the retail price of gasoline and diesel. Diesel now costs 2.50 ringgit (74 cents) per liter compared to 1.58 ringgit (47 cents) in May.

Like many other Asian countries, Malaysia raised pump prices to curb public subsidies officials said had become too costly due to higher world oil prices. (amr)

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